7:10 Bonus Shares: Buy The Penny Stock After Traded Ex-Bonus On 10th September?

With a market valuation of Rs 37.98 Cr and a latest trading share price of Rs 53.18, Indo Cotspin Ltd is a microcap textile firm. On Wednesday, 11th September, Indo Cotspin shares were likely to be in focus after the stock traded ex-bonus on Tuesday for a 7:10 ratio. Aside from the bonus shares, Indo Cotspin is the talk of the town as a penny stock. It closed on Tuesday at Rs 53.18, its 2% upper circuit limit, and has gained 77.62% year to date, making it worthwhile for market observers to keep an eye on the stock.

Indo Cotspin Bonus Shares

"This is to inform that the Company has fixed Tuesday, 10th, September, 2024 as the "record date" for the purpose of determining the eligibility of shareholders for issuance of Bonus Shares in the ratio of 7:10 (i.e., 7 new equity share of Rs. 10 each for every 10 equity share of Rs.10 each held as on the above-mentioned record date). subject to approval of shareholder in the ensuing Annual General Meeting," said Indo Cotspin in a stock exchange filing.

Due to the company's XT /T+1 settlement mechanism, Indo Cotspin traded ex-bonus on Tuesday. According to Motilal Oswal, a shareholder of the company who has owned shares of the company, which are brought before the record date and the ex-date, will be eligible for the bonus shares.

Indo Cotspin Latest News

The Board of Directors at their meeting held on 10th September 2024, have approved the incorporation of a wholly-owned subsidiary of the company named Indo Truly Trade Private Limited with an authorized share capital of 10 Lacs and subscribed capital of 1 Lacs. The acquisition has been finalized at a price of Rs 10 per share.

The objectives of the incorporation of a new subsidiary are to carry on the business of buying, selling, reselling, importing, exporting, transporting, storing, promoting, marketing or supplying, trading, dealing in any manner whatsoever in all type of food grains like rice and related products on retail as well as on wholesale basis in India or elsewhere, to carry on the business of buying, selling, reselling, importing, exporting, transporting, storing, promoting, marketing or supplying, trading, dealing in any manner whatsoever in all type of gold, bullion and related products on retail as well as on wholesale basis in India or elsewhere and to purchase, acquire, take on lease or in exchange or in any other lawful manner any area, land, building, flats, offices, structures and to turn the same into account, develop the same and dispose of or maintain the same and to build townships, markets or other buildings residential and commercial or conveniences thereon, as per a stock exchange filing.

Indo Cotspin Share Price Target

"Indo Cotspin stock price is bearish on the Daily charts with strong resistance at 93. A Daily close below support of 85.40 could lead to a target of 74 in the near term," said A R Ramachandran, Independent Research Analyst.

Disclaimer

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